The Dutch Expat Experience: Balancing Business Opportunities and Housing Challenges

Lifestyle

The country's stable government and economy, educated multilingual workforce, and excellent infrastructure provide a supportive environment for business. English is widely used in business settings, ensuring smooth communication and operations. Additionally, the Netherlands offers a high quality of life (ranking joint 14th in AIRINC's Global150 Lifestyle Ranking), making it an attractive destination for global assignees and professionals from other European countries.

AIRINC Housing Data

The AIRINC Housing team sets rents for three dozen Dutch host locations each year.

Housing Inflation

Rents in the Netherlands have been rising due to recent government housing and tax policies. From May 2023 to May 2024, rents for new leases increased by an average of 7%, with significant increases in Amsterdam, Rotterdam, and The Hague, all part of the "Randstad" region. These cities saw asking rents rise by 14% or more.

Reasons for Inflation

The main driver behind these increases are new housing policies and tax laws that made the rental market less attractive for private landlords and corporate investors. Many homes were removed from the rental pool and put up for sale, causing a shortage of private rentals and higher rents for the remaining properties. According to some estimates, Amsterdam now has half the number of rentals it did in 2021. Competition among renters is intense, with more than 20 inquiries for each new listing (this can be 50 or more in Randstad cities), bidding wars, and many contracts being signed above the asking rent. Owners are free to choose which tenant to accept.

To ensure a smooth house hunt, it is advisable to:

• Allow for an average of six weeks to secure a rental.
• Have all necessary paperwork (bank accounts, proof of income, visa, or work permit) ready before starting the search.
• Work with reputable Destination Service Providers or professional real estate agents who may have early access to listings and can help navigate the tight market.

Commuting between cities in the Randstad is feasible in less than an hour using the excellent train system, with bikes or metro trips for the last mile. Access to housing in smaller towns and villages outside city centers is also possible via bikes, cars, or buses. 

For the latest rent budgets, check with your AIRINC client representative. The housing team will continue to monitor the market through the next survey cycle in November 2024.